NIO Inc. – ADR (NYSE:NIO) shares are rising on Friday.

The company’s family-oriented sub-brand Onvo reportedly kicked off pre-sales for its new flagship SUV, the L90.

The launch positions Nio for a direct face-off with domestic rival Li Auto Inc. (NASDAQ:LI), which is preparing to debut its first fully electric SUV, the Li i8, later this month, reports CnEV Post.

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Morgan Stanley analyst Tim Hsiao reiterated his Buy rating on Nio, with a $5.90 price target, citing the launch of the Onvo L90 electric SUV as a key catalyst.

The L90 pre-sales began at a tech event in Hefei, home to Nio’s production facilities.

Onvo set an initial price of RMB279,900 ($39,000), including an 85-kWh battery -- under CEO William Li’s previously stated RMB300,000 target and potentially even lower at official launch

The L90 is expected to undercut Li Auto’s upcoming Li i8 and its premium Li L9 model, which starts at RMB409,800, CnEV Post adds.

Onvo’s SUV will be available in six- and seven-seat variants, with a five-seat L80 version set to launch later this year. The

L90’s dimensions and conventional SUV styling reflect current Chinese consumer preferences and contrast with Li i8’s MPV-inspired design.

At the event, Nio’s CEO highlighted the L90’s energy efficiency and lightweight construction.

The SUV weighs between 2,250 kg and 2,385 kg, lighter than the Li i8, which ranges from 2,580 kg to 2,610 kg.

Nio also leverages its extensive charging infrastructure -- over 3,400 battery swap stations and nearly 2,900 superchargers -- to support the L90 rollout.

Showroom vehicles are already available across Onvo’s retail network, with official deliveries scheduled to begin Aug. 1.

This rapid deployment mirrors Li Auto’s efficiency in rolling out new models, suggesting NIO is keen on matching its rival’s speed and execution in the increasingly competitive EV market.

NIO Price Action: Nio shares are trading higher by 5.56% to $3.90 at publication on Friday.

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Photo: Courtesy Nio